Power restrictions in Sichuan expected to lead to price increase in primary aluminum
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Update time : 2022-08-17 17:56:41
Due to the continuously increased electricity consumption caused by high temperatures and the decreased water supply in Sichuan, the power supply has become tight. Therefore, the Sichuan authority imposed power restrictions on industrial power users, which forced aluminum enterprises in Sichuan to shut down their operations, with expanding scopes. Market participants expressed their worries about a possible increase in aluminum prices.
It was predicted by research institutions that the maximum production cut of primary aluminum in Sichuan this time is likely to reach 50%. Some alumina refineries in Southwest China also have plans for production reduction, with an estimated scale of 1.4-1.6 million tons per year.
The market’s supply and demand in Sichuan might be affected by the government’s power restriction, and primary aluminum prices are likely to rise in the future.
